Construction of 3m EUR worth of forge started in Valjevo's Krušik

Construction of 3m EUR worth of forge in Valjevo-based Krušik was started yesterday (February 4, 2010) with the founding assembly of the Forging Center of Serbia.

As it was explained to the media, the new company was formed by public company Yugoimport SDPR, which invested 1.54m EUR and owns 51% of the company, and Krušik, which invested 1.48m EUR and owns 49% of land, equipment, technology and tools in the new company.

- Krušik's deposit in the new company are non-cash investments, while Yugoimport will provide the money. The works on overhaul of the existing equipment, which is provided by Krušik, were started in 2009 in association with German company Lasko - CEO of Krušik, Jovan Davidović, said to the press.

Davidović added that the construction of the forge would "resolve the problems with international cooperation, reduce the costs of operations, improve the quality of products, employ new workers and keep the foreign currencies in Serbia".

New Krušik's forge should be finished by the end of the year, and it will employ 92 workers. Zoran Jelić, a mechanical engineer who used to work in Krušik and Yugoimport, will be appointed as the CEO of the new company.

Old forge was torn down during NATO bombing, in spring 1999. Ever since, Krušik has been importing raw materials for mines, the company's most important export article, from Bosnia and Herzegovina and Bulgaria, which increased the production costs significantly.